Strong growth and positive EBITDA for the full year 2015

YEAR-END REPORT 2015 - PRECISE BIOMETRICS AB (PUBL), CORPORATE IDENTITY NO.
556545-6596
FOURTH QUARTER 2015

  · Consolidated net sales increased to SEK 23.4 (9.9) million.
  · Operating profit increased to SEK 4.4 (-9.7) million.
  · EBITDA increased to SEK 6.7 (-6.3) million.
  · Profit after tax increased to SEK 4.3 (-9.6) million.
  · Earnings per share for the period increased to SEK 0.01 (-0.03)

FULL YEAR 2015

  · Consolidated net sales increased to SEK 56.3 (31.4) million.
  · Operating profit improved to SEK -9.4 (-44.5) million.
  · EBITDA improved to SEK 0.5 (-31.7) million.
  · Loss after tax improved to SEK -9.4 (-44.0) million.
  · Earnings per share improved to SEK -0.03 (-0.13).
  · Cash and cash equivalents were SEK 52.3 (59.7) million at the end of the
year.
  · The business areas Desktop & Physical Access Solutions is integrated into
Mobile Smart Card Solutions from the start of 2016.

 SIGNIFICANT EVENTS IN THE FOURTH QUARTER

  · Precise BioMatch Mobile was integrated into over 20 smartphones.
  · Licensing agreements were signed with five sensor manufacturers; Cypress,
Oxi Technology, Focaltech, Gingytech and J-Metrics.
  · Follow-on order for Tactivo from the Defense Logistics Agency (DLA), an
agency of the U.S. Department of Defense.

SIGNIFICANT EVENTS FOR THE FULL YEAR

  · Precise BioMatch Mobile was integrated into over 55 smartphones from more
than 25 manufacturers.
  · Licensing agreements were signed with eight sensor manufacturers; Silead, JP
Sensor, Elan, Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics.
  · Several follow-on orders for Tactivo from the Defense Logistics Agency.
  · Tactivo order from the US Navy for secure mobile access to e-mail and
browsing capabilities on iOS devices.
  · Tactivo order from Imperial College Healthcare NHS Trust and Oxleas NHS
Trust in the UK for secure mobile access to healthcare systems.
  · Precise Biometrics was awarded the 2015 Frost & Sullivan Award for Global
Customer Value Leadership in fingerprint recognition for mobile devices.

CONFERENCE CALL
On the occasion of today’s year-end report, we are pleased to invite investors
and journalists to a conference call today at 10.00. To participate, dial +46
(0)8 566 426 91. More information can be found at the last page of the report.

CEO´S COMMENTS

I´m very pleased and proud to announce that the positive sales trends within
Fingerprint Technology and Mobile Smart Card Solutions are continuing and have
led to Precise Biometrics showing an operating profit at EBITDA level for the
full year for the first time in the company's history. Net sales in the fourth
quarter totaled SEK 23.4 million, representing an increase of 138 per cent
compared with the same quarter 2014. Operating costs are well-controlled and
rose marginally during the quarter. The quarter's EBITDA increased to SEK 6.7
million, and the period’s net profit improved to SEK 4.3 million. Developments
in 2015 showed very strong sequential growth in sales and profit. It is
extremely gratifying to see that all efforts made during the past two years have
now borne fruit.

The market for fingerprint technology in mobile devices is continuing to grow
rapidly. The fourth quarter saw the launch of a further 20 smartphones with
Precise BioMatch Mobile. Precise BioMatch Mobile has been integrated into a
total of more than 55 smartphones from over 25 manufacturers, including
smartphones from brands such as Google, Huawei, HTC, Lenovo, Sony and Xiaomi.
Fingerprint readers is now standard for nearly all manufacturers' premium
models, and is also increasing rapidly for phones in the medium and low-price
segments. One third of all smartphones sold in 2015 contained fingerprint
technology. In tandem with the volume growth in the market, interest is also
increasing among new players to take a market share. We concluded licensing
agreements during the quarter with five additional sensor manufacturers –
Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics. We now have a
agreements with a total of ten sensor manufacturers, which further reinforces
our position as the market-leading supplier of fingerprint software, and thereby
provides good prerequisites for continued growth and a large market share.

The interest for fingerprint technology within other product areas than
smartphones is growing rapidly. Hundreds of millions of people use fingerprint
technology every day in their smartphones for greater convenience and security.
The technology is accepted and will soon be found more or less in every person's
hand, which will also lower the threshold for integration in other types of
products. As sensors become smaller and therefore cheaper, while new sensor
technologies gain a foothold in the market, prerequisites for growth will be
created within new product areas such as smart cards, wearables, locks, vehicles
and products within the concept known as Internet of Things. Our fingerprint
software is already integrated into several products in the market, such as
national ID cards, locks, electronic wallets and PC accessories. In addition, we
are involved in several interesting projects that we believe could provide
support to our growth during the coming years.

Positive developments within the Mobile Smart Card Solutions business area are
continuing. We received orders during the quarter from units of the US
Department of Defense and from the healthcare sector in the United Kingdom and
Sweden. Growth is driven by higher demands for secure mobility solutions and
improved access to mobile applications with support for smart cards. In the
United States, major orders were received from the Defense Logistics Agency
(DLA) and the US Navy. We anticipate continued orders from the US Department of
Defense as a result of their efforts to roll out mobile solutions for secure
access to email and the Internet.

The healthcare markets in Sweden and the United Kingdom have developed well with
both increased sales and a rising number of pilot projects for secure mobility
with Tactivo. In order to meet demand, we have worked intensively with our
partners to package attractive solutions with Tactivo that enable convenient and
secure mobility with smart cards. Feedback has been very positive from both
healthcare staff and managers, which leads us to believe that sales will
continue to increase in both the United Kingdom and Sweden.

Outlook
The company is stronger than ever, and is well-positioned for continued
profitable growth. We have established Precise Biometrics as the leading
supplier of fingerprint software for the mobile device market. The volume within
the market and the number of utilization areas for fingerprint technology is
increasing rapidly. Our objective is to increase sales and market share within
the segment of fingerprint technology for mobile devices, and to establish a
leading position within new product areas that require a small sensor. We shall
ensure that our software gives the best user experience of products with small
fingerprint sensors for platforms with limited processing power and memory
space, irrespective of the sensor technology, operating system or platform. We
will create prerequisites for achieving our objectives by strengthening our
collaboration with existing customers and initiating new agreements with
additional sensor manufacturers.

We also see good growth potential within the Mobile Smart Card Solutions
business area. Interest is rising within existing markets for Tactivo, and the
possibility exists to develop new markets, primarily within the public sector,
where a smart card is often required for secure mobile log-in to information.

Håkan Persson, CEO

The information in this report is of such a nature that Precise Biometrics AB
(publ) has an obligation to publish it under the Securities Market Act. The
information was submitted for publication on February 16, 2016, at 8:00 AM CET.
FOR MORE INFORMATION, PLEASE CONTACT
Håkan Persson, CEO, Precise Biometrics AB
Tel. 46 46 31 11 05 or 46 734 35 11 05
E-mail hakan.persson@precisebiometrics.com
ABOUT PRECISE BIOMETRICS
Precise Biometrics is a market-leading provider of solutions that prove people's
identities through smart cards and fingerprint recognition. The company´s
products can be used for ID, enterprise and bank cards as well as access to
mobile solutions, computers and networks. Precise Biometrics serves business and
government organizations throughout the world and its products are licensed to
close to 160 million users. For more information, please visit
www.precisebiometrics.com